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Beauregard Parish School Board approves advertising, authorization for $15 million bond series; sale set for Aug. 26
Summary
The Beauregard Parish School Board voted to advertise and authorize the first $15 million series of general obligation school bonds from a voter-approved authorization. Electronic bids will be received Aug. 26, with proceeds expected Sept. 25.
The Beauregard Parish School Board voted to advertise and authorize the first $15 million series of general obligation school bonds from the voter-approved authorization, board members said.
Grant Schluter, bond counsel, told the board the district would advertise a competitive sale and receive electronic bids on Aug. 26 at 11 a.m. "This will be the formal advertising. It's gonna be a competitive sale. We'll receive electronic bids on August 26 at 11AM," Schluter said. He said the superintendent would be authorized to award the sale to the best bidder and that the district expects to receive proceeds on Sept. 25.
Board members voted to adopt the advertising resolution and then to authorize the incurrence of debt and issuance of the bonds. For the advertising resolution (item 4), Mister Grama moved and mister Kibito seconded; the board approved the motion. For the authorization resolution (item 5), mister Redler moved and mister Arshild seconded; the board approved that motion as well.
Schluter told the board the district was selling an initial $15 million tranche rather than the full voter authorization because federal rules limit how long bond proceeds can be held before being expended. "...we do have federal law restrictions on how long we have to expend the bond proceeds," he said, and described timing constraints that affect whether the district can issue the full authorized amount immediately.
Schluter and board members discussed market conditions and comparable recent sales in the state; he said recent municipal sales showed interest costs around the mid-4% range and that sales carried premiums that can add construction funds. He said a second tranche of bonds could follow when the district can reasonably expect to expend the proceeds within federal timeframes.
The board will return at its Sept. 11 meeting to confirm the sale and expects funds to be available Sept. 25. No vote tallies were read into the record; the chair called for the ayes and declared the motions adopted.
